Monday, February 08, 2010

You really think they lost money?

Why do schools lose money when they go to bowl games? Scott Beaulier wonders, why did the University of Wisconsin lose $300,000 when it took 832 to the Rose Bowl one year? The answer seems quite easy. How does one get a seat on that plane? You give contributions, year after year, to your school. You get on the special list for big donors so that, when the roses come calling, you can buy a seat on that plane ... with more donations. I believe the term is "loss-leader"...

This is a nice time to remind my SCSU readers that I am teaching economics of sports again this summer, my swan song from the chairmanship (they pay me to teach one summer class while dealing with the administrative detritus of the previous academic year.) Here's the syllabus from last time, which I need to refresh soon. Maybe Phil Miller will refresh his sidebar and I can steal his stuff.